Strata Title Law DIFC Law No. 5 of 2007

Part 1 : GENERAL.........................................................................................................................................................1

1. Title....................................................................................................................................................................... 1

2. Legislative authority.............................................................................................................................................. 1

3. Application of this Law.......................................................................................................................................... 1

4. Purpose of this Law............................................................................................................................................... 1

5. Date of enactment................................................................................................................................................. 1

6. Date of commencement......................................................................................................... ............................... 1

7. Application of other laws........................................................................................................................................1

8. Interpretation........................................................................................................................................................ 2

Part 2: STRATA SCHEMES.............................................................................................................................................3

CHAPTER 1 - DIVISION OF REAL PROPERTY BY STRATA PLAN........................................................................................ 3

9. Division of Real Property by Strata Plan.................................................................................................................3

CHAPTER 2 - REQUIREMENTS FOR REGISTRATION OF A STRATA PLAN............................................................................3

10. Requirements for Strata Plan.............................................................................................................................. 3

11. Lodgement and Registration of Strata Plan........................................................................................................ 5

12. Mortgages............................................................................................................................................................ 5

13. Effect of Registration.......................................................................................................................................... 6

CHAPTER 3 - THE COMMON PROPERTY..........................................................................................................................7

14. Common property................................................................................................................................................. 7

15. Ownership of Common Property........................................................................................................................... 7

16. Rights and responsibilities for Common Property.................................................................................................7

17. Disposal of interest in Common Property............................................................................................................. 7

CHAPTER 4 - EASEMENTS.............................................................................................................................................8

18. Statutory Easements........................................................................................................................................... 8

19. Creation by Body Corporate of Easements and Covenants.................................................................................. 8

20. Commencement of Easements and Covenants.................................................................................................... 9

CHAPTER 5 - LOT ENTITLEMENTS..................................................................................................................................9

21. Lot Entitlements...................................................................................................................................................9

22. Change of Lot Entitlements................................................................................................................................10

CHAPTER 6 - AMENDMENT OF STRATA PLAN...............................................................................................................10

23. Amendment of Strata Plan..................................................................................................................................10

24. Application for amendment................................................................................................................................10

25. Acquisition of Real Property by Body Corporate.................................................................................................11

CHAPTER 7 - DIVESTING OF REAL PROPERTY FOR PUBLIC PURPOSES...........................................................................11

26. Divesting of Real Property designated for public purposes...............................................................................11

CHAPTER 8 - CONSOLIDATION OF STRATA PLAN...........................................................................................................12

27. Consolidation of Strata Plans.............................................................................................................................12

28. Application for consolidation ............................................................................................................................12

29. How consolidation is effected............................................................................................................................12

30. Effect of consolidation.......................................................................................................................................13

CHAPTER 9 - COLLECTIVE SALE OF STRATA DEVELOPMENT......................................................................................... 13

31. Collective Sale Resolution..................................................................................................................................13

32. Collective sale procedures................................................................... .............................................................13

CHAPTER 10 - TERMINATION OF STRATA SCHEME........................................................................................................14

33. Termination by Resolution of Body Corporate............................. .......................................................................14

34. Termination by Court............................................................................................ ..............................................14

35. Registrar’s cancellation of Strata Scheme on application of Body Corporate...... ............................................15

36. Cancellation of Strata Scheme following order of Court....................................................................................15

37. Effect of cancellation.................................................................................... ....................................................15

38. Registration of cancellation.................................................. ............................................................................15

CHAPTER 11 - MISCELLANEOUS................................................................................................................................. 16

39. Reinstatement of Buildings................................................................................................................................16

40. Apportionment of statutory charge........................................................... ........................................................16

Part 3: STAGED STRATA SCHEMES...............................................................................................................................17

CHAPTER 1 - NATURE OF STAGED STRATA SCHEME......................................................................................................17

41. Staged Strata Schemes....................................................... ..............................................................................17

42. Form and contents of Staged Strata Scheme.....................................................................................................17

CHAPTER 2 - APPROVAL OF STAGED STRATA SCHEME IN PRINCIPLE........... .................................................................18

43. Application for Planning Approval......................................................................................................................18

44. Approval of Staged Strata Scheme in principle............................. ....................................................................18

CHAPTER 3 - REGISTRATION OF STAGED STRATA SCHEME............................................................................................19

45. Lodgement of Staged Strata Scheme........................ ........................................................................................19

46. Commencement of Staged Strata Scheme............................................. ...........................................................19

CHAPTER 4 - DEVELOPMENT RIGHTS.......................................................................................................................... 19

47. Development rights......................................... ...................................................................................................19

CHAPTER 5 - PROGRESSIVE DEVELOPMENT OF STAGED STRATA DEVELOPMENT............................................................19

48. Progressive development.................................................................................................................................. 19

CHAPTER 6 - VARIATION OF STAGED STRATA SCHEME...................................... ...........................................................20

49. Application for variation of Staged Strata Scheme........................................................................................... 20

50. Registration of variation............................................................................... .....................................................21

51. Variation of Staged Strata Scheme by Court...................................................................................................... 21

CHAPTER 7 - ENFORCEMENT OF STAGED STRATA SCHEME..................... .....................................................................22

52. Court Order......................................................................................................................................................... 22

53. Implied term in contract for sale of Lot or proposed Lot in Staged Strata Scheme............ ..............................22

CHAPTER 8 - TRANSFER OF TITLE TO LOTS SUBJECT TO REGISTERED STAGED STRATA SCHEME................................... 23

54. Acquisition of Real Property subject to Registered Staged Strata Scheme.......................................................23

Part 4: NAME OF STRATA SCHEME............................... ...............................................................................................24

55. Name of Strata Scheme.......................................... ...........................................................................................24

Part 5: BODIES CORPORATE....................................................................................................................................... 25

CHAPTER 1 - ESTABLISHMENT OF BODY CORPORATE............. .....................................................................................25

56. Establishment, regulation and register of Bodies Corporate............................................................................ 25

57. Division and merger of Bodies Corporate........................................................................................................... 25

CHAPTER 2 - BODY CORPORATE'S STAMP................................................................................................................... 26

58. Body Corporate’s Stamp.................................................................................. ...................................................26

CHAPTER 3 - MEMBERSHIP AND GENERAL MEETINGS............................... ..................................................................26

59. Membership of Body Corporate.......................................................................................................................... 26

60. General Meetings of a Body Corporate, including first annual General Meeting............................................... 27

61. Voting at General Meeting................................................................................................................................. 28

62. Voting on behalf of persons under disability..................................................................................................... 29

CHAPTER 4 - MANAGEMENT......................................... ..............................................................................................29

63. Management Committee......................................................................... ...........................................................29

STRATA TITLE LAW iii 64. Fiduciary duty of Committee Members............................................................................. 30

65. Appointment of Body Corporate Manager................................................. .........................................................30

CHAPTER 5 - FUNCTIONS AND DUTIES........................................................................................................................ 31

66. Functions of Body Corporate..............................................................................................................................31

67. General Fund and Reserve Fund............................................................. ...........................................................32

68. Service Charges................................................................................................................................................. 32

69. Certificates by Body Corporate................................................................. .........................................................33

CHAPTER 6 - MISCELLANEOUS................................................................................................................................... 34

70. Proceedings on behalf of Owners...................................................................................................................... 34

70A. Developer’s Obligation to Rectify Defects........................................................................................................34

71. Subrogation of Contractual Rights........................................................... .........................................................34

72. Strata Roll to be kept by Body Corporate........................................................................................................... 35

73. Post-box and notice board................................................................................................................................ 35

CHAPTER 7 - APPOINTMENT OF ADMINISTRATOR.........................................................................................................35

74. Appointment of Administrator.............................................................. ..............................................................35

Part 6: STRATA MANAGEMENT STATEMENT AND BY-LAWS........................... ...............................................................37

CHAPTER 1 - REGISTRATION OF STRATA MANAGEMENT STATEMENT AND BY-LAW........................................ ................37

75. Obligation to Register Strata Management Statement and the By-laws............................................................37

76. Limitations on Strata Management Statement and By-laws..............................................................................37

77. Registration and commencement of changes to the Strata Management Statement and the By-laws............ 38

78. Legal effect of Strata Management Statement and the By-laws.............................. ........................................38

CHAPTER 2 - EXCLUSIVE USE BY-LAWS..................................................................................................................... 38

79. Exclusive use By-laws....................................................................................................................................... 38

CHAPTER 3 - ENFORCEMENT OF STRATA MANAGEMENT STATEMENT AND THE BY-LAWS...............................................39

80. Compliance notices.................................................................................. .........................................................39

81. Enforcement by Registrar.................................................................................................................................. 39

CHAPTER 4 -COPIES OF STRATA MANAGEMENT STATEMENT AND THE BY-LAWS TO BE PROVIDED…...............................40

82. When copies of Strata Management Statement and the By-laws must be provided................... .....................40

Part 7: INSURANCE.................................................................................................... ................................................41

83. Body Corporate taken to have insurable interest in certain property............. ..................................................41

84. Insurance by a Body Corporate.................................................................. ........................................................41

85. Owner or Occupier may be required to comply with requirement to ensure that insurance may be obtained on reasonable terms. 41

86. Other insurance........................................................................................... ......................................................42

87. Insurance by Owner of Lot............................................................................... ..................................................42

88. Default by Body Corporate in relation to insurance........................................................................................... 42

89. Production of policies of insurance for inspection............................................... ............................................42

Part 8: DISPUTE RESOLUTION...................................................................................... ...............................................43

CHAPTER 1 - APPLICATION FOR RELIEF.......................................................................................................................43

90. Application for relief.......................................................................................... ................................................43

91. Mediation........................................................................................................................................................... 43

92. Notice of Application..........................................................................................................................................43

CHAPTER 2 - POWERS AND PROCEDURES................................................................................................................... 44

93. Investigations.................................................................................................................................................... 44

94. Power to dismiss proceedings........................................................................................................................... 44

95. Powers to obtain information.......................................................................... ..................................................44

96. Power of entry.................................................................................................................................................... 44

97. Obstruction............................................................................................................ ............................................44

STRATA TITLE LAW iv CHAPTER 3 - SPECIFIC FORMS OF RELIEF................ .................................................................45

98. Orders by Registrar in relation to contraventions of this Law or the Strata Management Statement or the Bylaws . 45

99. Interim Orders....................................................................................... .............................................................45

100. Order in relation to Common Property.............................................................................................................. 45

101. Order in relation to acquiring personal property.................................. ............................................................46

102. Order to make or pursue insurance claim........................................................................................................ 46

103. Order varying rate of penalty interest.................................... ..........................................................................46

104. Order to supply information or documents........................................ ..............................................................46

105. Order in relation to animals............................................................................................................................. 46

106. Order in relation to Strata Management Statement and the By-laws................ ..............................................47

107. Order granting Exclusive Use Right or licence................................................................................................. 47

108. Order making By-laws.......................................................................................................................................47

109. Order invalidating proceedings.........................................................................................................................48

110. Order reallocating Lot Entitlements................................................................................................................ 48

111. Order varying amount or manner of payment of Service Charges.................................................................... 48

112. Order varying amount of insurance.................................................................................................................. 48

113. Order appointing Administrator........................................................................................................................ 48

114. Order convening meeting of members of Body Corporate...................................... .........................................49

115. Order invalidating Resolutions........................................................................................................................ 49

116. Order terminating contract for services to a Body Corporate.......................................................................... 50

117. Order relating to structural alteration or addition to Lot or Common Property................................................ 50

118. Order in relation to development contemplated by Staged Strata Scheme..................................................... 50

119. Order imposing penalty for breach of By-law ................................................................................................. 50

119A. Order for Registration of a Lien........................................................................ .............................................51

120. Order for exemption from various statutory requirements............................. .................................................51

CHAPTER 4 - SERVICE AND ENFORCEMENT OF ORDERS............................. .................................................................51

121. Copy of Order to be served................................................................................................................................51

122. Penalty for contravention................................................................................................................................ 52

123. Enforcement of Orders............................................................................. ........................................................52

124. Enforcement of Orders for payment of money................................................................................................. 52

125. Order may have effect as Resolution of Body Corporate................................................................................. 52

CHAPTER 5 - MISCELLANEOUS ...…. ...........................................................................................................................53

126. Recording of certain Orders .............................................................................................................................53

127. Registrar may determine questions relating to title to Real Property..…......................................................... 53

Part 9: APPEALS........................................................................................... ............................................................54

128. Right of appeal to Court................................................................................................................................... 54

129. Powers of Court on appeal............................................................................................................................... 55

Part 10: MISCELLANEOUS............................................................................ ..............................................................56

130. Powers and protection of the Registrar.................................... .......................................................................56

131. Certificates issued by Body Corporate..................... .......................................................................................56

132. Action to be taken by the Registrar for Registration of Documents................................................................ 56

133. Use of Lots and Accessory Lots.................................................... ...................................................................56

134. Rights and remedies conferred by this Law to be in addition to those existing apart from this Law. ............57

135. Easements not affected by unity of ownership..................................... .........................................................57

136. Service, etc, of notices.................................................................................. ................................................57

137. Service on Body Corporate....................................................................... .......................................................57

138. Service on Owners.......................................................................................................................................... 57

139. Powers of entry in certain cases.................................................................................................................... 58

140. Power of entry by Relevant Authority..............................................................................................................58

141. Registrar’s Directives ................................................................................................................................... 58

142. Contraventions of this Law .. .........................................................................................................................59

143. DIFCA may make Regulations........................................................ ..................................................................59

Schedule 1 ............................................................................................................................................................60

Schedule 2 ........................................................................................................................................................... 62